HB 1207

1	A bill to be entitled
2	An act relating to procurement of contractual services by
3	a state agency; creating s. 287.0575, F.S.; providing
4	definitions; providing requirements with respect to the
5	provision of outsourced human services related to mental
6	health, substance abuse, child welfare, or juvenile
7	justice; providing requirements with respect to contracts
8	for such services; requiring state agencies to identify
9	specified costs to human services providers; requiring a
10	fiscal impact statement; providing that failure by a
11	governmental entity to negotiate a contract amendment or
12	remedy a material adverse impact of a new governmental
13	mandate constitutes an agency action or purposes of the
14	Administrative Procedure Act; providing for annual reports
15	by state agencies; amending s. 216.136, F.S.; requiring
16	the Social Services Estimating Conference to convene
17	quarterly for the purpose of developing information
18	related to mental health, substance abuse, child welfare,
19	and juvenile justice services needs; providing an
20	effective date.
21
22	Be It Enacted by the Legislature of the State of Florida:
23
24	Section 1.  Section 287.0575, Florida Statutes, is created
25	to read:
26	287.0575  Outsourced human services related to mental
27	health, substance abuse, child welfare, or juvenile justice.--
28	(1)  For the purposes of this section:
29	(a)  "Material adverse financial impact" means:
30	1.  An increase in reasonable costs to a contractor in
31	performing a contract for the outsourcing of human services
32	related to mental health, substance abuse, child welfare, or
33	juvenile justice that is the lesser of:
34	a.  Five per cent of the maximum obligation amount or unit
35	price of the contract; or
36	b.  Ten thousand dollars in the aggregate as a result of
37	all new governmental mandates taking effect during any calendar
38	year of the contract term; or
39	2.  An action that affects the core purpose and primary
40	intent of a contract for the outsourcing of such services.
41	(b)  "New governmental mandate" means a statutory
42	requirement, administrative rule, regulation, assessment,
43	executive order, judicial order, or other governmental
44	requirement, or an agency policy, that was not in effect when a
45	contract for the outsourcing of human services related to mental
46	health, substance abuse, child welfare, or juvenile justice was
47	originally entered into and that directly imposes an obligation
48	on the contractor to take, or to refrain from taking, any action
49	in order to fulfill its contractual obligation.
50	(c)  "Primary funding agency" means the state agency with
51	the largest financial contract obligation to a provider of
52	services to a particular population.
53	(2)  To create a more stable business environment for
54	providing outsourced human services related to mental health,
55	substance abuse, child welfare, or juvenile justice and to
56	ensure accountability, eliminate duplication, and improve
57	efficiency with respect to the provision of such services:
58	(a)  Each state agency shall annually submit to the
59	Legislature a list of mandated requirements, forms, and other
60	monitoring requirements that are satisfied through accreditation
61	by appropriate national accreditation organizations.
62	(b)  Each state agency that provides funding for outsourced
63	human services contracts under this section:
64	1.  Shall coordinate with other state agencies that provide
65	funding for services to a particular population. The state
66	agency legally responsible for providing services to a
67	particular population or the primary funding agency will act as
68	the lead agency in ensuring that monitoring activities are
69	coordinated.
70	2.  May delegate monitoring activities to another agency
71	that is monitoring outsourced services for a particular
72	population.
73	3.  Shall develop a common monitoring protocol to be used
74	when services to a particular population are being funded by two
75	or more agencies. The protocol, at a minimum, must:
76	a.  Delineate all program, fiscal, and administrative
77	contract monitoring activities, including all required reporting
78	mechanisms, to provide required program, fiscal, and
79	administrative data.
80	b.  Provide for a master list of core required documents
81	for contract monitoring purposes and provide for the collection
82	of such documents from each service provider.
83	(3)  Contracts to outsource human services related to
84	mental health, substance abuse, child welfare, and juvenile
85	justice shall:
86	(a)  Provide that, in the event that a material change to
87	the scope of the contract is imposed upon a service provider and
88	compliance with such change will have a material adverse
89	financial impact on the service provider, the contracting agency
90	shall negotiate a contract amendment with the service provider
91	to increase the maximum obligation amount or unit price of the
92	contract to offset the material adverse financial impact of the
93	change, provided the service provider furnishes evidence to the
94	contracting agency of such material adverse financial impact
95	along with a request to renegotiate the contract based on the
96	proposed change.
97	(b)  Ensure that payment will be made on all items not
98	under dispute and that in no event will payment be withheld on
99	undisputed issues pending the resolution of disputed issues.
100	(c)  Provide that any dispersed funds that remain
101	unexpended during the contract term be considered as authorized
102	revenue for the purposes of cash flow, program expansion and
103	development, and administrative costs.
104	(d)  Include language authorizing, subject to
105	appropriation, an annual cost-of-living adjustment that reflects
106	increases in the consumer price index or, at a minimum, is
107	comparable to any annual salary increase for state employees. In
108	the absence of a cost-of-living adjustment for state employees,
109	the contract must include language that adjusts human services
110	contracts by reducing the number of services or units contracted
111	for or that requires documentation substantiating the reasons a
112	reduction is not possible. This documentation shall be
113	considered by the Social Service Estimating Conference and
114	reported pursuant to s. 216.136.
115	(4)  State agencies shall provide an analysis of every new
116	form, procedure, or mandate required of a provider of human
117	services related to mental health, substance abuse, child
118	welfare, or juvenile justice under a contract for the
119	outsourcing of such human services that were not in effect when
120	the contract was originally entered into. The analysis shall
121	identify the cost to the provider of any such new requirements
122	and must be transmitted to the provider before any new form,
123	procedure, or mandate may be utilized or implemented. The
124	analysis shall also include a fiscal impact statement from the
125	provider with respect to each new form, procedure, or mandate
126	required or imposed.
127	(5)  Any contractor aggrieved by the refusal or failure of
128	a governmental unit to negotiate a contract amendment to remedy
129	a material adverse impact of a new governmental mandate pursuant
130	to this section constitutes an agency action for the purposes of
131	the Administrative Procedure Act.
132	(6)  By December 30 annually, each agency that contracts
133	for the provision of human services shall prepare a
134	comprehensive list of all contract requirements, mandated
135	reports, outcome measures, and other requirements of a provider.
136	The list shall be submitted to the Governor, the President of
137	the Senate, and the Speaker of the House of Representatives.
138	Section 2.  Paragraph (c) is added to subsection (6) of
139	section 216.136, Florida Statutes, to read:
140	216.136  Consensus estimating conferences; duties and
141	principals.--
142	(6)  SOCIAL SERVICES ESTIMATING CONFERENCE.--
143	(c)  The Social Services Estimating Conference shall be
144	convened quarterly for the purpose of developing information
145	related to mental health, substance abuse, child welfare, or
146	juvenile justice services needs including, but not limited to,
147	enrollment, caseload, utilization, expenditures, and
148	documentation required under s. 287.0575(3)(d), and that
149	reflects population growth and economic trends.
150	Section 3.  This act shall take effect July 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.